11:00AM New York – U.S. stocks declined at the opening after a two day rally that lifted most indexes 4%.

U.S. market averages opened lower after two rally that lifted major averages more than 4%. Dow Jones fell 19 to 13,271, Nasdaq declined 2 to 2,660, and S&P 500 lost 3 to 1,465.

The Commerce Department reported revised third quarter GDP growth rate to 4.9% from 3.9%. The revised rate of growth was the fastest since 7.5% growth in the third quarter of 2003. In another report, The Labor Department reported initial claims at the end of the last week jumped 23,000 to 325,000.

Sears Holdings (SHLD: chart) reported a sharp decline of fiscal third quarter profit on lower than expected same store sales and weaker margins in apparel and electronics. Sears stock declined 15%.

E*Trade (ETFC: chart) jumped 5% after it agreed to sell its mortgage portfolio and also raise convertible debt of $1.75 billion yielding junk rate of 12.5%. The troubled bank and online discount broker has been struggling for the last four months since the collapse of sub-prime lending.

European markets edged higher after the U.S. market opening. Financial services edged higher after China based Ping An insurance company agreed to purchase 4.2% stake in Fortis for 1.8 billion euros. The Belgian Dutch company was recently involved in the takeover of some of the assets of ABN Amro, another Dutch bank.

UK based Alliance & Leicester surged 12% after it said that it has arranged sufficient credit line to bolster its capital base. Bradford Bingley, another UK based home lender, jumped 5% after it confirmed that the company is on track to meet its earnings estimate for the fiscal 2007.

Asian markets rallied after the U.S. and European markets closed sharply higher. Hong Kong led the region with a rise of 4.1% followed by increases in Singapore of 3.2%, in Thailand of 3%, in South Korea and Taiwan of 2.3%, and in Australia and Philippines of 1.2%. Indonesia jumped 1.1% and India edged higher 1%.

Property stocks in Hong Kong rose sharply after the comments from the U.S. Fed Vice Chairman stoked expectations of rate cut. Hong Kong dollar is linked to the U.S. dollar and interest rates in the region move in line with the U.S. rates.

In Japan stocks in retail, banking, property, and energy sector moved higher.


6:00AM New York, 7:00PM Hong Kong- Gains on Wall Street lifts Hong Kong up 4.06%

Stocks in Hong Kong gained on expectations that the U.S. Federal Reserve will cut its key rate at its December 11 meeting and on comments by the vice mayor of Tiajin Cui Jindu that the “through trade” program allowing mainland individuals to trade in Hong Kong equities would proceed.

In Hong Kong Hang Seng Index surged 4.06% or 1,111.30 to 28,482.54. Only one in the 40 stocks fell in the index.

Realty stocks led the gainers on the speculation that the U.S. Federal Reserve would cut its borrowing costs, stoking expectations the Hong Kong Monetary Authority official rate would climb down as the rates are in sync with those in the U.S.

Sino Land rose 9.3% to HK$27, Hang Lung Properties gained 7.8% to HK$34.45, and Sung Hung Kai surged 4.5% to HK$159.

Vice mayor of Tianjin Cui Jindu said today at a business conference in Beijing that the northern Chinese port city would proceed with the “through trade” program that is meant to allow mainland nationals with the Bank of China Limited to buy stocks in Hong Kong as a way to divert excess funds in offshore.

China Unicom Limited rose 8.5% to HK$11.32, China Mobile Limited jumped 4.2% to HK$5.60, and China Life Insurance Company rose 6.3% to HK$42.45.

The Standard news reported today ports-to-property conglomerate Wharf Holdings said yesterday it would raise about HK$9.1 billion by issuing 305.9 million shares that will be used in the expansion of mainland property projects. The company also announced that the underlying profits, excluding revaluation surplus rose 30% to HK$4.02 billion in the first three quarters, while net profit was at HK$7.55 billion. The company traded up 6.5% at HK$ 43.10.

Bank of Communications Limited rose 5.4% to HK$12.50 after HSBC executive director Peter Wong said the company aims to increase its stake in the company from the current 18.1% equity to 19.9%.